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FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
The FAIS Ombud determines that an FSP must pay a client R300 000. The FSP does not ask for reconsideration within the time allowed, and does not pay. What can the client do?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Sue in court, because a determination is only a recommendation.
- b) Ask the Ombud to have the FSP's directors imprisoned for contempt.
- c) Enforce it as if it were a civil court judgment.Correct
- d) Ask the FSCA to pay her and then to recover the money from the FSP.
Why this is the answer
A final determination of the Ombud that is not taken on reconsideration has the effect of a civil judgment and can be enforced through the court's processes, for example by a writ of execution. It is not a mere recommendation, the FSCA does not pay clients' claims, and the Ombud does not imprison anyone.
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